Bits and Atoms (fundamental article on the digital economy for 1995, part 1)
An article that “started” the digital economy.
Post: 19
Date: 1.1.95
From: <nicholas@media.mit.edu>
To: <lr@wired.com>
Topic: Bits and Atoms
')
When returning from abroad, you must fill out a customs declaration form. But have you ever declared the value of bits that you acquired during your trip? Did the customs officers ask, did you have a floppy disk worth hundreds of thousands of dollars? Not. For them, the value of any floppy disk is the same - full or empty - just a few dollars or the cost of atoms.
I recently visited the headquarters of one of the five largest manufacturers of integrated circuits in the United States. I was asked to log in and, in the process, asked if I had a laptop with me. Of course yes. The registrar asked for the model, serial number and cost of the computer. “Approximately 1 to 2 million US dollars,” I said. “Oh, that can't be, sir,” she replied. "What do you mean? Let me see him. ”
I showed her my old PowerBook (whose PowerPlate makes it impressive, 4 inches thick), and she estimated its value at $ 2,000. She wrote down this amount, and they allowed me to enter.
Our value assessment is related to atoms. General agreement on tariffs and trade concerns atoms. Even new movies and music are sent as atoms. Companies declare their atoms on balance and depreciate them according to strict schedules. But their bits, which are often much more valuable, do not appear. Strange.
When Judge Harold Green dealt with AT & T in 1983, he told the newly established regional operating companies Bell that they could not be in the information business. Who did he think he was deceiving? Seven sisters were already in the information business and did an excellent job, thank you. Their biggest income was (and are) the Yellow Pages, from the sale of which they received a large profit. Judge Green, sir, companies have always been in the information industry. What are you talking about?
In fact, the judge means that companies have every right to kill thousands of trees, litter our houses and fill out second-rate websites with their information business, if this information is in the form of atoms — discarded paper. But as soon as the companies delivered the same information without deposits, without returning, in the form of environmentally friendly bits, they violated the law.
Isn't that funny? Has anyone thought about the meaning of “being digital” when AT & T was torn apart? I'm afraid not.
During a speech I gave at a recent meeting of shopping center owners, I tried to explain that the company's transition to a digital future would be at a speed proportional to the conversion of its atoms into bits. As an example, I used the rental of video cassettes, since these atoms could easily be discharged.
It so happened that Wayne Huizing, the former chairman of Blockbuster, was the speaker of the dinner. He defended his range of goods, saying: “Professor Negroponte is mistaken.” His argument was essentially based on the fact that pay-per-view TV does not work because he owns such a small part of the market. On the contrary, Blockbuster can circle Hollywood around a finger, because video stores provide 50 percent of Hollywood's income and 60 percent of its profits.
I thought about saying Hayzing and realized that this unusual entrepreneur does not understand the difference between bits and atoms. His atoms - videotapes - prove that video on demand will work. Video tapes are a pay-per-view TV. The only difference is that in his business he can attract up to a third of the profits from late fees.
Thomas Jefferson presented the public libraries as a fundamental American law. What this forefather never considered was that every citizen could go into each library and borrow each book by pressing a key without leaving home. Suddenly, these library atoms become library bits and are potentially accessible to everyone on the Web. This is not what Jefferson imagined. This is not what the authors represent. Worst of all, this is not what the publishers imagine.
The problem is simple. When information is embodied in atoms, there is a need for their delivery in all kinds of industrial-era means and huge corporations. But all of a sudden, when the focus shifts to beats, the traditional big guys are no longer needed. Self-publishing on the Internet makes sense. It is not for paper copy.
It was thanks to the New York Times that I learned about John Markov’s work on computers and communications and enjoyed reading. If it were not for the New York Times, I probably would not have learned about it. However, now it would be much easier for me to automatically collect his new stories and deposit them in my personal newspaper or offer files for reading. I would be willing to pay Markoff 5 cents for each of his new works.
If one-fifth of 1995 Internet users would have joined this idea, and Markov would have written 20 stories a year, he would have earned $ 1 million, which, I am ready to assume, is much more than how much he is paid "The New York Times ". If you think that one-fiftieth is too large a percentage, then wait a while. Once someone is created, the distributor's added value becomes less and less in the digital world.
The distribution and movement of bits is much easier than the distribution and movement of atoms. But shipping is only part of the problem. A media company is, among other things, observing talents, as well as its distribution channels in the form of bits or atoms, which provide a test bed for public opinion. But after a certain point, the author may not need this forum. In the digital age, WIRED authors can sell their stories directly and make more money as soon as they are discovered.
Although today it does not work, soon it will work very well, very soon - as soon as all “digital” becomes the norm.
To be continued...
Nicholas Negroponte is an American computer scientist of Greek origin.
The brother of the US Undersecretary of State (2007), the former director of US National Intelligence (2005–2007) John Dimitris Negroponte.
In 1985, he founded and headed Media Labs at the Massachusetts Institute of Technology. From 1993 to 1998 he led the column “Move bits, not atoms” in the journal Wired. In 1995, he formulated the concept of Digital Economy. Since 2005 - the initiator and leader of the educational project "2b1", the forerunner of the One Laptop Per Child program (a laptop for each child). Since February 2006, he has headed the non-profit organization OLPC, formed under the auspices of the UN.
Post: 19
Date: 1.1.95
From: <nicholas@media.mit.edu>
To: <lr@wired.com>
Topic: Bits and Atoms
')
The limit of $ 400 applies only to atoms
When returning from abroad, you must fill out a customs declaration form. But have you ever declared the value of bits that you acquired during your trip? Did the customs officers ask, did you have a floppy disk worth hundreds of thousands of dollars? Not. For them, the value of any floppy disk is the same - full or empty - just a few dollars or the cost of atoms.
I recently visited the headquarters of one of the five largest manufacturers of integrated circuits in the United States. I was asked to log in and, in the process, asked if I had a laptop with me. Of course yes. The registrar asked for the model, serial number and cost of the computer. “Approximately 1 to 2 million US dollars,” I said. “Oh, that can't be, sir,” she replied. "What do you mean? Let me see him. ”
I showed her my old PowerBook (whose PowerPlate makes it impressive, 4 inches thick), and she estimated its value at $ 2,000. She wrote down this amount, and they allowed me to enter.
Our value assessment is related to atoms. General agreement on tariffs and trade concerns atoms. Even new movies and music are sent as atoms. Companies declare their atoms on balance and depreciate them according to strict schedules. But their bits, which are often much more valuable, do not appear. Strange.
Atoms are ranked less than bits
When Judge Harold Green dealt with AT & T in 1983, he told the newly established regional operating companies Bell that they could not be in the information business. Who did he think he was deceiving? Seven sisters were already in the information business and did an excellent job, thank you. Their biggest income was (and are) the Yellow Pages, from the sale of which they received a large profit. Judge Green, sir, companies have always been in the information industry. What are you talking about?
In fact, the judge means that companies have every right to kill thousands of trees, litter our houses and fill out second-rate websites with their information business, if this information is in the form of atoms — discarded paper. But as soon as the companies delivered the same information without deposits, without returning, in the form of environmentally friendly bits, they violated the law.
Isn't that funny? Has anyone thought about the meaning of “being digital” when AT & T was torn apart? I'm afraid not.
Pay per view
During a speech I gave at a recent meeting of shopping center owners, I tried to explain that the company's transition to a digital future would be at a speed proportional to the conversion of its atoms into bits. As an example, I used the rental of video cassettes, since these atoms could easily be discharged.
It so happened that Wayne Huizing, the former chairman of Blockbuster, was the speaker of the dinner. He defended his range of goods, saying: “Professor Negroponte is mistaken.” His argument was essentially based on the fact that pay-per-view TV does not work because he owns such a small part of the market. On the contrary, Blockbuster can circle Hollywood around a finger, because video stores provide 50 percent of Hollywood's income and 60 percent of its profits.
I thought about saying Hayzing and realized that this unusual entrepreneur does not understand the difference between bits and atoms. His atoms - videotapes - prove that video on demand will work. Video tapes are a pay-per-view TV. The only difference is that in his business he can attract up to a third of the profits from late fees.
Library of the future
Thomas Jefferson presented the public libraries as a fundamental American law. What this forefather never considered was that every citizen could go into each library and borrow each book by pressing a key without leaving home. Suddenly, these library atoms become library bits and are potentially accessible to everyone on the Web. This is not what Jefferson imagined. This is not what the authors represent. Worst of all, this is not what the publishers imagine.
The problem is simple. When information is embodied in atoms, there is a need for their delivery in all kinds of industrial-era means and huge corporations. But all of a sudden, when the focus shifts to beats, the traditional big guys are no longer needed. Self-publishing on the Internet makes sense. It is not for paper copy.
Markov process in production
It was thanks to the New York Times that I learned about John Markov’s work on computers and communications and enjoyed reading. If it were not for the New York Times, I probably would not have learned about it. However, now it would be much easier for me to automatically collect his new stories and deposit them in my personal newspaper or offer files for reading. I would be willing to pay Markoff 5 cents for each of his new works.
If one-fifth of 1995 Internet users would have joined this idea, and Markov would have written 20 stories a year, he would have earned $ 1 million, which, I am ready to assume, is much more than how much he is paid "The New York Times ". If you think that one-fiftieth is too large a percentage, then wait a while. Once someone is created, the distributor's added value becomes less and less in the digital world.
The distribution and movement of bits is much easier than the distribution and movement of atoms. But shipping is only part of the problem. A media company is, among other things, observing talents, as well as its distribution channels in the form of bits or atoms, which provide a test bed for public opinion. But after a certain point, the author may not need this forum. In the digital age, WIRED authors can sell their stories directly and make more money as soon as they are discovered.
Although today it does not work, soon it will work very well, very soon - as soon as all “digital” becomes the norm.
To be continued...
about the author
Nicholas Negroponte is an American computer scientist of Greek origin.The brother of the US Undersecretary of State (2007), the former director of US National Intelligence (2005–2007) John Dimitris Negroponte.
In 1985, he founded and headed Media Labs at the Massachusetts Institute of Technology. From 1993 to 1998 he led the column “Move bits, not atoms” in the journal Wired. In 1995, he formulated the concept of Digital Economy. Since 2005 - the initiator and leader of the educational project "2b1", the forerunner of the One Laptop Per Child program (a laptop for each child). Since February 2006, he has headed the non-profit organization OLPC, formed under the auspices of the UN.
What else to read
Source: https://habr.com/ru/post/354414/
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